I am looking at buying a IP in Northern WA, however, I live In perth and dont know the areas very well, Is anyone else interested in that area? would you buy without knowing the area first (but purely on returns)or would it be worth flying there first? Has anoyone got any disaster stories of buying unseen?
j‘would you buy without knowing the area first (but purely on returns)’
The answer is NO!!!
You MUST get to know the area, starting with at least a couple of months research into the sustainability of the main industries in the town, population trends, vacancy levels, prices, rents, etc. Make sure the town is big enough to support property managers, tradesmen, etc, as you’ll need these to manage & maintain the property.
You should also get maps and familiarise yourself with the area. Note that RE Agents can be a bit ‘creative’ with their suburb naming, and the place you buy over the web might be away from everything else.
If all still looks OK, contact local agents, book a plane ticket and spend at least a week up there looking around.
The markets of towns dependent on a single industry or employers can be very cyclical and you could lose a lot of money.
Don’t scrimp on travel or inspection costs as they are your safeguard to ensure that you get a good property in a good area.
But if your research shows the place has got a future and the numbers stack up, then go ahead and buy, knowing you’ve made an informed decision.
Peter
How far north are you talking – I’m a Perthite too and know a reasonable amount about Northern Western Australia…..but I still wouldn’t buy without stepping foot in the town and getting a feel for things. Good luck…SQ
Where in Northern WA?
In a nutshell, Broome is essentially a tourim town with some industry. It is absolutely booming and has been for 12 months or so. More a CG place than a pos cashflow.
Karratha and Port Hedland are mining/industry towns with big rental returns and fluctuating CG. Both are booming but are dependent on the state of the local economy.
cheers Brett
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